As fixed-rate contracts fade, dynamic tariffs are transforming how businesses manage energy costs. With prices shifting in real time, automation, AI and storage solutions are becoming essential tools for navigating volatility and maximising savings.
Across Europe, the energy landscape is seeing a big transformation. Fixed-rate energy contracts are moving aside and giving way to dynamic tariffs, where prices change in real-time based on supply and demand. It’s a shift that is redefining how businesses and homeowners engage with their energy usage, one that presents both opportunities and challenges for those looking at optimising their energy consumption in an ever-growing and uncertain market.
The surge in renewables and the implications
At the heart of this transformation is the expansion of renewable energy sources. Solar and wind power contribute significantly to the electricity supply throughout Europe; in 2024 just under half of the energy produced came from renewables. This comes at the cost of greater volatility in energy pricing. On exceptionally sunny and windy days, wholesale electricity prices plummet, occasionally turning negative, as observed in countries like Germany and the Netherlands.
